Overview

• JD.com and Ant Group have lobbied the People’s Bank of China to authorize yuan-pegged stablecoins in Hong Kong to promote global adoption of the currency.
• In private discussions, the firms proposed issuing stablecoins backed by offshore yuan to challenge the dominance of U.S. dollar-linked tokens.
• PBOC advisor Huang Yiping said strict mainland capital controls make onshore stablecoin issuance impractical, highlighting Hong Kong as an alternative venue.
• Hong Kong’s new stablecoin licensing law, effective August 1, establishes regulatory requirements for issuers and positions the city as a digital finance hub.
• The global stablecoin market is valued at about $247 billion today, with over 99% of tokens pegged to the U.S. dollar and projected to grow to $2 trillion by 2028.